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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (13595)	3/4/1998 3:18:00 PM
From: Lost1	Read Replies (2) \| Respond to of 95453

Thanks PAPAYA--I missed that post..Got any more cousins?? I Could use some insight into a company in the Telecom. sector called Davox (DAVX)..BUENA SUERTA--lost1

To: Broken_Clock who wrote (13595)	3/4/1998 3:20:00 PM
From: Redman	Read Replies (2) \| Respond to of 95453

A couple of investment houses issued updated reports on mavk as a result of a conference call last night. mavk stated a perceived slowdown in drilling has given mavk's distributors the desire to start lowering inventory for the time being. Both houses state that this is going to be a temporary slow down (hopefully as it seems to be dependent on oil and gas prices) and they are only revising Q2 and Q3 earnings (Q2 ends in march 98). They also stated, as Papaya King did, that some import pressure was starting to show up. Imports now account for just under 20% as opposed to just over 17.5% before the decline in oil prices and foreign currencies. They stated that they do not expect this number to go any higher as a percent of total pipe purchased. They restated that this is a temporary problem and will not effect Q4 or 1999 numbers. They also reissued a buy rating on the stock, as it is trading at a 10.48 PE to 1998 REVISED earnings and 6.31 PE to 1999 revised numbers AND it will have an estimated growth rate of 39% next year and 37% for the next five years. All in all I think this was priced in, and like the oil service market all the bad news is out. I am looking for a recovery to the mid thirties by summer like the service market has started recovering. That is all. green

To: Broken_Clock who wrote (13595)	3/4/1998 3:50:00 PM
From: SJS	Read Replies (1) \| Respond to of 95453

PK, I posted sometime last fall the reason, and it is sort of in line with this. However, it plays out something like this: Because of the HUGE demand for pipe, domestic suppliers (MAVK< LSS, etc) cannot fill al the orders and drillers are complaining that it can take 6 months to get the pipe they need. The only thing keeping foreign pipe at bay is the tarrifs, which are holding the prices of foreign pipe higher that domestic pipe. The drillers say: We don't care, we need pipe, so they are lobbying to get the import duty and restrictions curtailed to alleviate the problem. maybe that is what is happening now.